In June, the Metro Vancouver resale market continued to surprise on the upside, with rebounding sales activity and month-over-month benchmark price appreciation. Despite a hike to the overnight interest rate on June 7, which caught many off-guard, buyers are showcasing their long-term confidence in Vancouver real estate. There is still a willingness to enter a complex market that is experiencing impacts from several external sources.   

GREATER VANCOUVER RESALE MARKET DEFIES SEASONAL TRENDS WITH A CONTINUED PRICE SURGE 

The Greater Vancouver resale market notched its sixth consecutive monthly price increase in June, despite an elevated rate environment and a shift into the Summer season that typically sees sales slow. In particular, condominium prices have now nearly returned to 2022’s peak – showcasing the strength and speed of the recovery thus far.

Residential home sales in the region reached 2,988, a significant 21.1% increase compared to June 2022, but are still 8.6% below the 10-year seasonal average of 3,269 sales. On the supply side, inventory levels remain a key challenge for the market, with 9,990 properties listed for sale in June. This represents a 7.9% decrease compared to the previous year, and a 17.4% drop below the 10-year seasonal average.

This ongoing mismatch between buyer demand and inventory levels is reflected in the sales-to-listings ratio, which was 31.4% for June 2023. Significant upward price pressure is expected to persist at these levels, with further gains in the HPI benchmark price expected in July.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,203,000, a 2.4% decrease from June 2022, but a 1.3% increase from May 2023. 

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RISING PRICES AND LOW INVENTORY POINTS TO A HEATED SELLER’S MARKET IN THE FRASER VALLEY

Parallelling many of the themes North of the Fraser, the Fraser Valley real estate market experienced solid sales activity in June, returning to levels consistent with the 10-year monthly average. Overall, the region recorded 1,935 sales, marking a significant 51.1% increase compared to June 2022 and a 13.1% increase compared to May 2023, which contradicts usual summer patterns.

In terms of supply, the FVREB received 3,424 listings in June, reflecting a 2.8% increase compared to the previous year but a 3.1% decrease compared to May 2023. Despite gains in inventory levels in recent months, there still needs to be more active listings to meet current demand levels. Consequently, the sales-to-listings ratio was 37%, up 3% from the previous month, and suggesting a heated seller’s market.

These dynamics have supported the prevailing trend of rising prices in the Fraser Valley. June saw the fifth consecutive price increase of 2023, appreciating 2.1% month-over-month to an overall benchmark price of $1,040,900.

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INVENTORY INCREASE SIGNALS POSITIVE SIGNS IN VICTORIA'S REAL ESTATE MARKET

The Victoria Real Estate market saw steady performance in June, with 705 properties sold, a 15.2% increase from June 2022 but a 6.6% decrease from the previous month. Per VREB Chair Graden Sol, this is a return to a more traditional seasonal sales cycle – with a peak in Spring followed by a reduced but stable Summer market.

Inventory rose by 7% compared to May 2023, with 2,342 active listings, a positive sign in a market that has seen depressed listing activity. Despite this, the overall sales-to-listings ratio remains at an elevated 30.1% - indicating a similarly tight market as seen in the Lower Mainland.

In June, benchmark prices in the region were $1,310,100, a 1.0% increase from the previous month, but remaining 7.0% down year-over-year.

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